Summary
Highlights
Based on Article 1767, a partnership is formed when two or more persons bind themselves to contribute money, property, or industry into a common fund with the intention of dividing profits among themselves. This includes both business partnerships and professional partnerships.
Partnerships are primarily consensual, meaning they are perfected by mere consent. However, exceptions require formal writing or registration: contributions of real property require a public instrument and inventory; agreements falling under the Statute of Frauds must be written; and partnerships with capital contributions of 3,000 or more must be registered with the SEC.
The seven essential characteristics of a partnership are: consensual (perfected by consent), commutative (equivalent contributions), principal (does not depend on other contracts), bilateral (involves multiple parties), onerous (expecting returns), nominate (governed by specific Civil Code rules), and preparatory (geared toward future operations).